GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - NYSE:GVA - US3873281071 - Common Stock
110 USD
+0.4 (+0.36%)
110.001 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GVA. GVA was compared to 52 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes GVA very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
GVA has a Return On Assets of 5.10%. This is in the better half of the industry: GVA outperforms 63.46% of its industry peers.
GVA has a better Return On Equity (14.91%) than 69.23% of its industry peers.
The Return On Invested Capital of GVA (6.48%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GVA is significantly below the industry average of 17.22%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROIC | 6.48% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 3.89%, GVA is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA has a Operating Margin (5.33%) which is comparable to the rest of the industry.
GVA's Gross Margin of 15.61% is in line compared to the rest of the industry. GVA outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
GVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GVA has less shares outstanding
Compared to 5 years ago, GVA has less shares outstanding
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
GVA has an Altman-Z score of 3.48. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.48, GVA is in line with its industry, outperforming 59.62% of the companies in the same industry.
GVA has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as GVA would need 2.40 years to pay back of all of its debts.
The Debt to FCF ratio of GVA (2.40) is better than 69.23% of its industry peers.
GVA has a Debt/Equity ratio of 0.69. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio (0.69) which is comparable to the rest of the industry.
Although GVA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.48 |
ROIC/WACC0.68
WACC9.54%
2.3 Liquidity
GVA has a Current Ratio of 1.57. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA's Current ratio of 1.57 is fine compared to the rest of the industry. GVA outperforms 73.08% of its industry peers.
A Quick Ratio of 1.45 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a Quick ratio of 1.45. This is in the better half of the industry: GVA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.63% over the past year.
Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
The Revenue has been growing slightly by 7.18% in the past year.
The Revenue has been growing slightly by 6.57% on average over the past years.
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 24.45% on average per year.
Based on estimates for the next years, GVA will show a quite strong growth in Revenue. The Revenue will grow by 9.43% on average per year.
EPS Next Y39.55%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue Next Year12.39%
Revenue Next 2Y10.74%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.07, GVA is valued on the expensive side.
80.77% of the companies in the same industry are more expensive than GVA, based on the Price/Earnings ratio.
GVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
With a Price/Forward Earnings ratio of 16.80, GVA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GVA indicates a rather cheap valuation: GVA is cheaper than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, GVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 16.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
GVA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GVA is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 13.65 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GVA may justify a higher PE ratio.
GVA's earnings are expected to grow with 24.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.64
EPS Next 2Y27.31%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.47%, which is pretty low.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.57. GVA pays more dividend than 86.54% of the companies in the same industry.
With a Dividend Yield of 0.47, GVA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has paid a dividend for at least 10 years, which is a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
14.32% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP14.32%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
110
+0.4 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.26%
Inst Owner Change0.76%
Ins Owners1.1%
Ins Owner Change-10.58%
Market Cap4.82B
Analysts80
Price Target131.92 (19.93%)
Short Float %10.34%
Short Ratio8.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP14.32%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.51%
Min EPS beat(2)12.74%
Max EPS beat(2)102.29%
EPS beat(4)2
Avg EPS beat(4)23.24%
Min EPS beat(4)-17.71%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)13.65%
EPS beat(12)7
Avg EPS beat(12)-124.98%
EPS beat(16)7
Avg EPS beat(16)-115.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)1.65%
Revenue beat(12)6
Avg Revenue beat(12)0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.01%
PT rev (1m)17.22%
PT rev (3m)27.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)1.61%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.23%
Revenue NY rev (1m)4.46%
Revenue NY rev (3m)4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 16.8 | ||
| P/S | 1.18 | ||
| P/FCF | 15.58 | ||
| P/OCF | 10.96 | ||
| P/B | 4.53 | ||
| P/tB | 6.65 | ||
| EV/EBITDA | 13.65 |
EPS(TTM)5.22
EY4.75%
EPS(NY)6.55
Fwd EY5.95%
FCF(TTM)7.06
FCFY6.42%
OCF(TTM)10.04
OCFY9.13%
SpS93.13
BVpS24.27
TBVpS16.54
PEG (NY)0.53
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROCE | 10.71% | ||
| ROIC | 6.48% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 11.41% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% | ||
| FCFM | 7.58% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 98% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 125.42% | ||
| Profit Quality | 195.06% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.48 |
F-Score7
WACC9.54%
ROIC/WACC0.68
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
EPS Next Y39.55%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
Revenue Next Year12.39%
Revenue Next 2Y10.74%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y94.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year96.13%
EBIT Next 3Y33.81%
EBIT Next 5YN/A
FCF growth 1Y450.89%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y999.24%
OCF growth 3Y175.18%
OCF growth 5Y32.58%